In 2016 Naval Group, then known as DCNS, was selected as the winner of a competitive evaluation process, to design and build 12 new submarines for the Royal Australian Navy.

From the outset the Turnbull government described the project as being worth $50 billion, although more recently the Commonwealth has put the figure closer to $90 billion.

South Australian Senator Rex Patrick began a lengthy Freedom of Information battle in June 2018 to discover what Naval Group's total price was for the contract.

Two months later in August 2018 Defence formally blocked the request, and Senator Patrick sought an Information Commissioner review.

Last August, Australian Information Commissioner Angelene Falk found in favour of Senator Patrick, ordering Defence to release details from Naval Group's successful bid documents.

A month later in September 2020, Defence appealed Commissioner Falk's decision to the Administrative Appeals Tribunal (AAT), with France's Naval Group choosing to join the proceedings.

In response to questions asked during a Senate Estimates hearing in March, Defence has now confirmed it is covering Naval Group's legal expenses at the AAT.

"Pursuant to the Strategic Partnering Agreement, Defence is liable for Naval Group's reasonable and allowable costs in relation to the proceedings," the Department said.

Australia and France finally signed the Strategic Partnering Agreement in 2019, with the ABC later revealing details of the break payments contained in the confidential document.

Senator Patrick says confirmation taxpayers are footing the French company's legal costs is "outrageous" and he has questioned the competency of Defence Department Secretary Greg Moriarty.

"The Independent Information Commissioner has determined that the information I am seeking – the price Naval Group offered to sell a fictitious future submarine to Australia for – should be public."

"It's concerning that the taxpayer is paying the legal costs of the Defence Department to challenge the Information Commissioner's order to hand over the information."

"It is completely outrageous that the taxpayer is also paying the legal costs for Naval Group, a commercial entity with a 3.3 billion Euro turnover," Senator Patrick added.

The ABC understands Naval Group is being represented at the AAT by a team consisting of one barrister and three other lawyers, working alongside another barrister and two lawyers from the Australian Government Solicitor's office.

"Defence has advised that it is obliged to pay under the future submarine project's Strategic Partnering Agreement with the Commonwealth."

"The Secretary of Defence, the person responsible for all Defence contracting approvals, has been played as a sucker in this, although it is the taxpayer that wears the negative consequences."

Last year Naval Group moved to block another bid by Senator Patrick to access documents on its progress in fulfilling its contract obligations under the Future Submarine deal. 

Story By |  Andrew Greene ABC